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UAE markets seek attractive elements - Analysts

UAE markets seek attractive elements - Analysts
Photo Credit: Arabianeye-Reuters

United Arab Emirates – Mubasher: UAE markets are awaiting new elements to emerge that can attract investors and help exit the current state of anticipation, analysts told Mubasher.

The Dubai Financial Market (DFM) recorded its fifth straight decline after closing in the red on Wednesday, following pressure in the real estate and investment sectors and overcoming gains in the banking sector.

Similarly, the Abu Dhabi Securities Exchange (ADX) declined on Wednesday, following pressures from the telecom and banking sectors. The real estate sector’s gains failed to boost market since the start of the session.

Reda Muslim, managing partner at Truth Economic Consultancy, said that UAE markets are enduring a state of anticipation, which is clear in the declining liquidity levels.

Most investors do not see good opportunities in the markets amid the current fluctuations and a lack of clarity, which are keeping investors at bay, he told Mubasher.

Moreover, most of the cash dividends distributed lately have been used to cover financial positions for some investors, Muslim noted, adding that this is why these dividends have not been returned to the market.

Meanwhile, MubasherTrade CEO Ehab Rashad said that recent UAE market fluctuation was due to fluctuating global markets and oil prices.

Low liquidity during these fluctuations indicates that investors seek to keep their stocks and not take to buying at current levels, he highlighted, adding that this results in a semi-sideways movement.

Muslim told Mubasher he expects UAE market fluctuations to continue till the end of March, until new elements emerge that can attract investors.